Air India faces over $2 billion annual loss

India’s national airline, Air India, has reported a major financial loss, with its annual deficit crossing $2 billion.

According to an international news agency, citing a report from Singapore Airlines (a major shareholder), Air India’s annual profit has dropped by 57.4%, and the situation may get worse in the coming months.

The report says there are two main reasons behind this decline. The first is rising tensions in the Middle East, which have disrupted flight routes over the region. The second is restrictions in certain airspaces, forcing the airline to take longer and more expensive routes for international flights.

Due to these challenges, Air India has already reduced or suspended several international routes, and investment in the airline has also slowed down.

Experts say this is not just a problem for one airline, but also reflects wider challenges in India’s aviation sector. They also note that investor confidence is becoming weaker, which could affect the broader economy.

The situation shows how global conflicts and airspace restrictions can significantly increase costs and impact airline operations worldwide.